AmerisourceBergen (ABC) Downgraded to “Hold” at Zacks Investment Research

Zacks Investment Research cut shares of AmerisourceBergen (NYSE:ABC) from a buy rating to a hold rating in a report published on Monday morning.

According to Zacks, “AmerisourceBergen has been trading below the broader industry over the last year. However, the company is expected to benefit from generics growth. AmerisourceBergen has been actively pursuing acquisitions to strengthen its core areas. Acquisition of H.D. Smith, the largest independent wholesaler in the United States, is worthy of mention. Solid performance in the Pharmaceutical Distribution Segment is a positive. Strong sales in the oncology unit have enhanced AmerisourceBergen Drug Corporation (ABDC) sales. On the flip side, AmerisourceBergen faces headwinds due to the slowdown in hepatitis C revenues and conversion of branded drugs to the lower price generics. Furthermore, a temporary slowdown in PharMEDium's growth is expected to mar the company’s bottom line. Cutthroat competition in niche space also adds to the woes.”

ABC has been the subject of several other research reports. Robert W. Baird reiterated a buy rating and issued a $96.00 price target on shares of AmerisourceBergen in a report on Monday, November 6th. Cowen raised shares of AmerisourceBergen from a market perform rating to an outperform rating in a research report on Tuesday, October 10th. Mizuho set a $92.00 price objective on shares of AmerisourceBergen and gave the stock a hold rating in a research report on Tuesday, October 24th. Needham & Company LLC cut their price objective on shares of AmerisourceBergen from $93.00 to $86.00 and set a buy rating on the stock in a research report on Monday, November 6th. Finally, Jefferies Group set a $85.00 price objective on shares of AmerisourceBergen and gave the stock a hold rating in a research report on Sunday, October 29th. One research analyst has rated the stock with a sell rating, six have assigned a hold rating, ten have assigned a buy rating and one has given a strong buy rating to the company’s stock. The stock currently has an average rating of Buy and a consensus price target of $96.39.

AmerisourceBergen (ABC) traded down $0.44 during trading on Monday, hitting $100.86. 1,895,800 shares of the stock traded hands, compared to its average volume of 1,480,208. The firm has a market capitalization of $22,000.00, a PE ratio of 62.26, a PEG ratio of 1.71 and a beta of 0.99. AmerisourceBergen has a 12 month low of $71.90 and a 12 month high of $101.85. The company has a debt-to-equity ratio of 1.83, a current ratio of 0.91 and a quick ratio of 0.48.

AmerisourceBergen (NYSE:ABC) last released its quarterly earnings results on Thursday, November 2nd. The company reported $1.33 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $1.32 by $0.01. The company had revenue of $39.12 billion during the quarter, compared to analysts’ expectations of $40.10 billion. AmerisourceBergen had a net margin of 0.27% and a return on equity of 56.29%. The business’s quarterly revenue was up 4.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.30 earnings per share. equities research analysts forecast that AmerisourceBergen will post 6.24 EPS for the current fiscal year.

In other AmerisourceBergen news, insider Dale Danilewitz sold 1,857 shares of the company’s stock in a transaction on Monday, November 13th. The shares were sold at an average price of $74.69, for a total transaction of $138,699.33. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, Director Richard W. Gochnauer sold 2,000 shares of the company’s stock in a transaction on Wednesday, January 10th. The stock was sold at an average price of $96.54, for a total transaction of $193,080.00. Following the sale, the director now directly owns 12,947 shares in the company, valued at $1,249,903.38. The disclosure for this sale can be found here. In the last three months, insiders sold 203,823 shares of company stock worth $17,145,148. 27.40% of the stock is currently owned by insiders.

Hedge funds and other institutional investors have recently bought and sold shares of the business. Sun Life Financial INC raised its position in AmerisourceBergen by 15,000.0% during the second quarter. Sun Life Financial INC now owns 1,208 shares of the company’s stock worth $114,000 after acquiring an additional 1,200 shares in the last quarter. D.A. Davidson & CO. raised its position in AmerisourceBergen by 29.0% during the second quarter. D.A. Davidson & CO. now owns 1,668 shares of the company’s stock worth $157,000 after acquiring an additional 375 shares in the last quarter. Intl Fcstone Inc. bought a new stake in AmerisourceBergen during the second quarter worth $201,000. Zeke Capital Advisors LLC bought a new stake in AmerisourceBergen during the third quarter worth $210,000. Finally, Roberts Glore & Co. Inc. IL bought a new stake in AmerisourceBergen during the third quarter worth $219,000. 67.83% of the stock is currently owned by hedge funds and other institutional investors.

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AmerisourceBergen Company Profile

AmerisourceBergen Corporation is a pharmaceutical sourcing and distribution services company. The Company’s segments include Pharmaceutical Distribution and Other. The Company provides services to healthcare providers, and pharmaceutical and biotech manufacturers. As of June 30, 2016, the Pharmaceutical Distribution segment consists of two operating segments, including the operations of AmerisourceBergen Drug Corporation (ABDC) and AmerisourceBergen Specialty Group (ABSG), which distributes specialty drugs to their customers.

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